Arca Investments debt restructuring returns to square one

A Prague appeals court voided the approval of a reorganization plan of insolvent Arca investments. The plan was approved by a court last year, but some of the creditors appealed. The company's insolvency proceedings are running simultaneously in Czechia and Slovakia. The Czech plan foresaw paying the secured creditor J&T Banka in full while unsecured creditors were to receive 31% of their claims. The appeals court questioned the debtor's honesty; e.g., the valuation of assets. The company now has to revise its reorganization plan, to be reviewed again by creditors and courts.

(e15.cz)